Home Affordability Calculator

Find out how much of a mortgage you can qualify for and how much house you can afford

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How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.
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How much house can I afford?

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How to use our mortgage affordability calculator

To figure out how much home you can afford with our calculator, enter your gross annual income and total monthly debts, choose a down payment amount and select a loan term.

LendingTree’s calculator defaults to a 30-year fixed-rate mortgage, but there’s a 15-year fixed-rate term option if you want to save on interest charges and can afford a higher monthly payment.

How to adjust your price range

Our calculator is preset to a “conservative” 28% DTI ratio; most lenders set a maximum DTI limit between 41% and 45%. You can slide the bar up to an “aggressive” 50% DTI ratio if you’re willing to make room in your budget for a higher payment.

 It’s harder to qualify for a high-DTI loan

If you carry a lot of debt, lenders may require a higher credit score or extra mortgage reserves to cover a few month’s worth of mortgage payments.

Understanding how much mortgage you can afford

Home affordability comes down to two things:

  1. How much a mortgage lender will qualify you to borrow, based on your income, debt and down payment savings
  2. How much money you have in your budget after all of your other expenses are covered

Understanding the difference — and then using a home affordability calculator to crunch some numbers — will help you decide how much house you can really afford.

Factors that affect how much house you can afford

Your debt-to-income (DTI) ratio

Lenders divide your total monthly debt payments by your income to determine whether or not you can afford another loan.

Your down payment

The higher your down payment, the higher the loan amount you can qualify for.

Your loan term

A 30-year fixed-rate mortgage offers the lowest stable payment. If you choose a 15-year fixed-rate term, you’ll save money on interest, but won’t qualify for as much house.

Your interest rate

Higher mortgage rates mean higher monthly payments. So the higher your rate, the less house you’ll be able to afford.

How much house can I afford based on my salary?

Lenders will look at your salary when determining how much house you can qualify for, but you’ll need to look at the big picture — your actual take-home pay and monthly expenses — to determine whether that much house is truly affordable.

Here’s a breakdown of what that means:

  1. Your DTI ratio is the main factor lenders use to determine how much they’ll qualify you to borrow. They divide your monthly debt load by your monthly income to calculate it.
  2. Your income is calculated pretax, meaning paycheck deductions for retirement or health insurance aren’t factored in. So while a lender may say you can afford extra debt, your take-home pay may not be enough to cover your living expenses.
  3. Lenders don’t take all of your expenses into account — just the kinds of debts that would appear on a credit report, like auto loan or student loan payments. So all your extra commitments, like gym memberships, cell phone bills and groceries, won’t be considered.

What is the 28/36 rule?

Financial planners often mention the “28/36 rule” when it comes to home affordability.

  The 28 is a recommended DTI ratio for your monthly mortgage payment compared to your gross monthly income. Lenders call this your “front-end” DTI ratio.

  The 36 is a recommended DTI ratio for your mortgage payment, plus any other debt like auto loans, credit cards, student loans or other accounts that appear on your credit report. This is your “back-end” DTI ratio.

6 ways to increase how much house you can afford


    Keep your credit card balances low, pay everything on time and avoid opening a lot of new credit accounts. A higher credit score will get you a lower interest rate, which equals a lower monthly mortgage payment.


    Your loan amount and mortgage payment will be lower with a larger down payment. The full amount doesn’t have to be from your own funds, however. You can get a gift from a relative, take out a 401(k) loan or combine your down payment with down payment assistance programs.


    Don’t forget your side hustle income — you can use it to help you qualify for a loan, as long as your tax returns show part-time income for the last two years. Plus, two incomes are better than one, so if you can cosign the mortgage with someone you’ll have more borrowing power.


    The less debt you have, the more house you can afford. If your DTI ratio is holding you back, consider putting a lump sum toward an outstanding personal loan balance, or selling a car and paying off the auto loan.


    You’ll be able to afford a bigger home with a longer repayment term, such as 30 years. However, if the higher monthly payment doesn’t strain your monthly budget, a shorter term can save you thousands in interest charges.


    Government-backed loan programs may allow for a higher DTI ratio than conventional loans, even if you have a low credit score. Still, they come with higher mortgage insurance costs or guarantee fees that could affect how much you can afford.

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